Gusto Problems & Issues
Real user-reported problems, complaints, and limitations for Gusto. Based on analysis of 14 signals.
Issues by Category
Customer support extremely slow - takes days to weeks for replies
Users report customer service is slow to resolve problems, sometimes taking 24 hours to reply to a single question, with full conversations stretching over a month. Phone support is limited and tickets logged by phone often disappear. Free users are stuck with chatbots.
Support staff cannot answer questions or transfer to someone who can
Gusto is very easy if you never have to talk to support, but if you do, you talk to someone who cannot answer your question and will not transfer you to someone who will. Users describe support as a 'waste of time' that does not provide needed assistance.
Support tickets disappear and online tickets not taken
Customer support has declined significantly. Tickets logged by phone disappear and online tickets are not being taken on. Users report going weeks without resolution on critical payroll issues.
Payroll errors and missing payments to employees
Multiple users report money withdrawn from company accounts that never reached employees. Gusto told customers funds would be returned but never did. Critical payroll failures that directly impact employee compensation and trust.
Tax filing errors and incorrect EIN handling
Customers report mistakes in tax account information including incorrect EIN number transcription preventing tax payments from being credited properly. Some users discovered Gusto filed taxes incorrectly, leading to IRS issues.
Unexpected withdrawals and billing errors
Users report issues with unexpected debits, delays in receiving funds, and difficulties in rectifying billing errors. Some experienced double charges or incorrect amounts withdrawn from business accounts.
Making corrections is nearly impossible
What used to be an easy, intuitive platform has become unusable for anything other than basic payroll. Need to make a correction? Everything has to be a support issue and they honestly cannot fix simple things. Users describe it as a nightmare to navigate changes.
Off-cycle payroll breaks overtime calculations
When running off-cycle payroll or multiple payrolls per month, Gusto does not track hours properly and fails to track employees' weekly hours when paying monthly. This causes issues with overtime calculations and compliance.
Employee UI is clunky and software becomes sluggish
The user interface for employees can be somewhat clunky at times. The software becomes sluggish and unresponsive, particularly when processing large volumes of data. Users report frustration with navigating basic tasks.
Constant price increases - Simple plan jumped from $40 to $49
As of March 2026, Gusto increased Simple plan from $40 to $49/month (22.5% increase). Add-ons can raise costs by $10-30 per employee each month. Small businesses often see a $49 plan turn into $100+/month once features are enabled.
Charged full month fee even when canceling without running payroll
Customers report being charged the full month's fee after canceling without running any payroll. Gusto charges for the full month regardless of when you cancel, with no prorated refunds for early cancellation.
Expensive for growing teams - costs escalate quickly
Gusto gets pricey depending on employee count. Plus plan is $80 base + $12/employee/month. A 20-person company pays over $320/month ($3,840/year). Premium plan reaches $180 base + $22/employee for larger teams.
Difficult to customize employee withholdings
Some employees have found it difficult to customize their withholdings properly. The system lacks flexibility for non-standard payroll scenarios and custom deduction configurations.
Contractor payment limits cause delays
Contractors have a limit on how many payments per month they can receive, which has caused delays for some users. This is problematic for businesses with frequent contractor payouts.
Regret Patterns
Common reasons users regret choosing Gusto.
Discovered support issues only after payroll emergency
Users praise Gusto initially for ease of use. The real problems surface when something goes wrong - support takes days to respond, cannot fix issues, and you are stuck with payroll problems affecting employees.
Locked into annual billing when better alternatives exist
Users commit to Gusto before discovering Rippling, OnPay, or other alternatives with better support and pricing. Annual billing makes switching mid-year costly.
Price increases after initial commitment
Businesses budget based on current pricing, then face unexpected increases. The 2026 price hike caught many off guard. Per-employee costs compound as the company grows.
Tax filing errors caused IRS problems
Users trusted Gusto's automated tax filing, then discovered errors months later when IRS notices arrived. Fixing tax issues with slow Gusto support adds stress and potential penalties.
Missing employee payments damaged trust
Money withdrawn from company account never reached employees. Explaining to staff that their paycheck is missing due to Gusto errors destroys employer credibility. Some never recovered the funds.
Correction nightmare for simple fixes
Users realize too late that making corrections is nearly impossible. A simple bonus or adjustment turns into weeks of support tickets. What should take minutes takes days.
When Gusto Breaks Down
Specific scenarios where Gusto fails or underperforms.
Need to correct a payroll error quickly
Something was entered wrong and you need to fix it before payday. Support takes days to respond. Making direct corrections is nearly impossible. Employees end up with wrong amounts.
Employee did not receive their paycheck
Money left your account but the employee did not get paid. Support is slow to respond and cannot explain where the money went. You need to pay the employee out of pocket while waiting for resolution.
Running off-cycle payroll with overtime
You need to run an extra payroll mid-month. Gusto does not track weekly hours across pay periods, causing overtime miscalculations. Employees may be underpaid and you face compliance risk.
Scaling beyond 20 employees
Costs escalate rapidly. A 30-person company on Plus pays $440/month. You start comparing to competitors with flat-rate pricing and realize you are overpaying significantly.
IRS notice about tax filing error
You receive an IRS notice about unpaid taxes or incorrect filings. Gusto support takes weeks to investigate. You may owe penalties while waiting for Gusto to admit and fix their error.
Expanding to multiple states
You hire your first out-of-state employee and realize you need to upgrade to Plus plan. Setup is complex, support cannot help quickly, and you face compliance deadlines.
Urgent question with no support available
It is payday and you have a critical question. Support takes 24+ hours to respond. Phone support is unavailable or unhelpful. You are forced to make decisions without guidance.